Mortgage Protection Policy
If the past number of years has taught us anything, there are no guarantees in life, it has taught us how important our health and our income are.
We have started asking ourselves many questions:
- How would my family cope if I was unable to work due to ill health?
- Are we financially secure if anything happens to me?
- How long would our savings sustain our current standard of living?
- What would my family be entitled from the state if I was unable to work?
Unfortunately, the state will not met the shortfall in your family’s standard of living should anything happen to you – so do you have sufficient savings to fund for such an eventuality?
There is an easier way that you can buy peace of mind and ensure that financial concerns are the least of your worries. Vision Financial Solutions Limited will ensure that you will get the best possible mortgage protection policy for your own personal needs in today’s market.
Usually, you will transfer ownership of your Life Mortgage Cover plan to your mortgage lender. As you pay off your mortgage, your cover will reduce to reflect the reducing amount you owe on your mortgage. The fact that the level of cover reduces over the term of your plan helps to keep the cost of this plan lower than other forms of life assurance.
The payments and benefits under this plan are guaranteed. That means you will always know how much you are paying and how much will be paid out. The amount of life cover you need and the length of time you should be protected for will depend on the amount of your mortgage and how long you have left to pay it off. There are two options for Life Mortgage Cover and who you can protect.
You can protect:
- Yourself (single cover), which means we will make the payment if you die during the term of the plan; or
- Yourself and your partner (joint cover), which means that we will make the payment if you or your partner die during the term of the plan. Under this option, there will only be one payment. Your children are automatically covered for the benefits you are covered for.
Some points you must take into consideration before applying for your Mortgage Protection cover are as follows:
- You must be aged 18 to 74 to start this cover.
- The maximum term for life cover is 40 years or up to age 80.
- Your life cover will only be paid out if you die during the term of the plan.
Full disclousure is necessary; companies will not pay claims in certain circumstances. For example, if you have not given us full information about your health, occupation, pastimes or hobbies.
The amount you pay is guaranteed to stay the same for the whole of the period you are insured for.
If you stop making payments, you will no longer be protected.
Mortgage Protection – flexibility
We are aware that once you take out a mortgage protection plan, sometimes your needs and circumstances can change. In order to reflect this some providers have introduced a flexible option into our Life Mortgage plans. This will allow you to make significant changes to your level of benefits or the term of your benefits without going through the hassle of cancelling your existing plan and taking out a new one. When you change your benefits or plan term we will work out a new plan premium at that time. This may mean it goes up or down.
With this flexibility option you can:
- reduce or increase the term of your plan; and
- reduce or increase your existing cover.
At Vision Financial Solutions Limited our principal objective is to provide you with advice on all mortgage protection products. We will help you to choose the most suitable mortgage protection policy for you and your family and will be able to guide you through the other benefits available.
If/ When you circumstances change e.g. getting married, having children, we will be here to help you review your mortgage protection policy and advise you on whether it is the best product for you and your new situation.
We would recommend that all our clients would review their life assurance on a regular basis to ensure that the best possible cover is in place at the best possible price.
If you would like to avail of our financial review or would just like a little more information on mortgage protection policies, please contact us or go to our FAQ section for further information.
Vision Financial Solutions Limited can help you navigate your way through this minefield of information to ensure you get the policy that will best suit your needs.
